Abstract
This chapter presents a fundamental domain tested on the CISSP, Domain 3: Information Security Governance and Risk Management. Key terms, concepts, and formulas related to risk management are presented within this chapter. Risk, threat, and vulnerability are basic terms that must be understood to prove successful with this domain. Understanding how to perform calculations using Annualized Loss Expectancy (ALE), Single Loss Expectancy (SLE), Annualized Rate of Occurrence (ARO), and Exposure Factor (EF) is highlighted as part of quantitative risk analysis. Important concepts related to information security governance such as privacy, due care, due diligence, certification, and accreditation are also a focus of this chapter.
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